BUYING A BUSINESS WITH NO MONEY DOWN: YES, IT’S POSSIBLE! WHAT LENDERS ACTUALLY NEED TO SEE
- 8 hours ago
- 1 min read
One of this week’s longer conversations was with Ray from Yuno Connects. An acquisition question that attracts plenty of simplistic answers:
Can someone acquire a substantial business without contributing cash to the purchase price?
The answer is more nuanced than most headlines suggest.
The discussion explores how commercial and non-bank lenders can think about acquisition funding, the role of property and other security, how the target company’s cash flow and balance sheet enter the assessment, and why the buyer’s own credibility can become part of the lending proposition.
Perhaps the most useful part of the conversation is its treatment of risk.
The security offered to a lender is not what makes an acquisition good or bad.
The underlying risk remains whether the buyer has acquired the right business, completed sufficient due diligence, retained enough capital resilience and has the capability to operate what they have bought.
For buyers who have automatically assumed that their acquisition budget equals the cash they currently have available, it is a conversation worth hearing in full.
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